Examples of recent questions relating to Intelligent Finance transfer of equity
- My divorce is through as is the consent order. Now I must address the transfer of equity at the HMLR and the Intelligent Finance mortgage. I have contacted Intelligent Finance for the transfer of equity application. What happens next?
- At what point do I pay stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage via Intelligent Finance?
- My current home loan is with Intelligent Finance. Can I transfer equity to someone under eighteen years old?
- What should I be budgeting for when it comes to what conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Intelligent Finance - and have been quoted Four Hundred pounds excluding VAT by Intelligent Finance's approved conveyancing solicitor, Is this a reasonable price?
- Can you tell me how to have a person removed from the title documents to a property if the mortgage is with Intelligent Finance
- I jointly own a flat in Winchelsea
, with a Intelligent Finance mortgage with my ex partner. He and his fiance are going to buy me out. We had the go ahead from Intelligent Finance to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Intelligent Finance (apparently). In order to save fees can I do the Land Registry formalities?
- My partner and I have 50:50 shares in a BTL. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name to reduce our tax on rental income. If Intelligent Finance are content with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
Information that may be required from your conveyancing solicitor is likely to ask about your Intelligent Finance Transfer of Equity
Please give the details of anyone to be added to the title deeds?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
General Advice to read in in addition to the above Intelligent Finance transfer of equity Advice :
Tax and Legal
There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancer will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back
what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects
lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy varies based on the market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Intelligent Finance your property may be repossessed.
Preparing the Transfer of Equity with a Intelligent Finance Mortgage
When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable
if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’
On form AP1, your conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content on this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.